BMI View: We have revised up our 2015 forecast for Slovakia's construction industry to 9.7% on the backof historical revisions to the 2014 data, and stronger indicators across the industry. Low borrowing costs,improving demand conditions and strong business confidence should keep investment and credit growth athealthy levels, a particularly promising sign for the construction industry. Public-private Partnerships arelikely to grow in prevalence and are set to support our forecasts over the coming years, especially in theroad sector, in which we expect to see the strongest growth.Key developments informing our forecast include:Highways Projects Back On CourseOur outlook for Slovakia's transport infrastructure sector has improved in 2015 thanks to the start-up ofwork on the much-delayed D1 highway, and to the approval of the EUR1.33bn D4-R7 expressway.

Wemaintain that the EU's raft of transport network project funding announced in 2013 will benefit Slovak roadand rail development/upgrading to better integrate with a European network. It should act as a driver forimproved project handling, supported by a stable political outlook in Slovakia.

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